Case Analysis
Sealed Air® Corporation
Case Analysis
MK810 Adrianne Wenisch
Teopaco Christopher Buckwell
June 21, 2010 Matthew Whiten
Position
Sealed Air should move forward with the introduction of an uncoated bubble product. Despite AirCap’s increase in sales over the past ten years, AirCap’s bubble market share has been declinedrecently declining from 85% share in 1975 to 82% in 1980. A similar trend is already present in England where local distributors anticipate a 50% decline in coated bubble market share over the next three years. Sealed Air must retain their market leadership position and take advantage of the uncoated opportunity before they lose more sales. Similarly, local bubble process competition is no longer ensuring Sealed Air’s patents will protect their market share. Sealed Air has the manufacturing facilities and availability required to start making manufacturing a superior uncoated bubble; this is a perfect opportunity to protect their leadership position by offering a full range of protective packaging products to both technically savvy packaging engineers and cost conscious buyers. Finally, Sealed Air has already invested in selective distributor networks and built strong sales relationships to sell un coated product, and the execution of a well articulated marketing strategy will guarantee uncoated bubble success.
Arguments
1. Low Barriers to Market Entry (US and Europe).
Sealed Air is regionally well established to market an uncoated product in both the United States and in Europe. Given Sealed Air’s selective and proven distribution model, it can leverage distributors’ loyalty utilizing their strong standing relationships for quick adoption of Sealed Air’s new uncoated bubble. . Additionally, this will potentially streamline the distributor’s product offering while maintaining their current portfolio. Unlike GAFCEL®, Sealed Air is also well distributed
Case Analysis
MK810 Adrianne Wenisch
Teopaco Christopher Buckwell
June 21, 2010 Matthew Whiten
Position
Sealed Air should move forward with the introduction of an uncoated bubble product. Despite AirCap’s increase in sales over the past ten years, AirCap’s bubble market share has been declinedrecently declining from 85% share in 1975 to 82% in 1980. A similar trend is already present in England where local distributors anticipate a 50% decline in coated bubble market share over the next three years. Sealed Air must retain their market leadership position and take advantage of the uncoated opportunity before they lose more sales. Similarly, local bubble process competition is no longer ensuring Sealed Air’s patents will protect their market share. Sealed Air has the manufacturing facilities and availability required to start making manufacturing a superior uncoated bubble; this is a perfect opportunity to protect their leadership position by offering a full range of protective packaging products to both technically savvy packaging engineers and cost conscious buyers. Finally, Sealed Air has already invested in selective distributor networks and built strong sales relationships to sell un coated product, and the execution of a well articulated marketing strategy will guarantee uncoated bubble success.
Arguments
1. Low Barriers to Market Entry (US and Europe).
Sealed Air is regionally well established to market an uncoated product in both the United States and in Europe. Given Sealed Air’s selective and proven distribution model, it can leverage distributors’ loyalty utilizing their strong standing relationships for quick adoption of Sealed Air’s new uncoated bubble. . Additionally, this will potentially streamline the distributor’s product offering while maintaining their current portfolio. Unlike GAFCEL®, Sealed Air is also well distributed